Fiscal Year 2010 Budget In Brief

Maritime Administration

The Maritime Administration (MARAD) has a threefold mission. MARAD programs advance: (1) economic growth by providing job-producing businesses with efficient transportation options to reach their suppliers and customers, (2) marine transportation that is sensitive to environmental impacts, and (3) a viable U.S. merchant marine that is vital to commerce, emergency response, and national security.

Maritime transportation contributes more than $10 billion per year to the economy. MARAD supports the maritime industry by working with shipping, shipbuilding, and port operations. MARAD’s Title XI and Assistance to Small Shipyards programs provide grants supporting the industry, which can be an engine for capacity and economic growth. The FY 2010 program includes a Presidential initiative for integrated planning with the Department of Homeland Security to inform development and modernization of inter-modal freight infrastructure linking coastal and inland ports to highway and rail networks.

MARAD’s Maritime Security Program and Ready Reserve Force program help ensure the readiness of sea-lift capacity to respond to national crises and Department of Defense mobilizations. The U.S. Merchant Marine Academy and State maritime academies educate and graduate merchant marine officers ready to serve the maritime industry and the Armed Forces.

MARITIME ADMINISTRATION BUDGET

(Dollars In Millions)

2008
Actual

2009
Enacted
Omnibus

2009
Enacted
Total 1/

2010
Budget

Operations & Training

122

123

123

153

Assistance to Small Shipyards

10

17

17

0

Assistance to Small Shipyards (ARRA)

0

0

100

0

Ship Disposal

17

15

15

15

Maritime Security Program

156

174

174

174

Maritime Guaranteed Loans (Title XI)

8

4

4

4

TOTAL

313

333

433

346

Includes funding provided under the American Recovery and Reinvestment Act of 2009.
For FY 2010, MARAD is requesting $346 million to carry out its organizational mission.

Operations
&
Training

Assistance
to Small
Shipyards

Ship
Disposal

Maritime
Security
Program

Maritime
Guaranteed
Loans

Total

FY 2009 Base
(Omnibus)

123

17

15

174

4

333

Pay Inflation
Adjustments

3

0

0

0

0

3

Non-Pay
Inflation
Adjustments

1

0

0

0

0

1

Annualization
of FY 2009
Initiatives

1

0

0

0

0

1

Non-
recurring
Costs or
Savings

0

0

0

0

0

0

Base Re-
engineering,
Reductions or
Adjustments

-1

-17

0

0

0

-18

FY 2010
Current
Services
Levels

127

0

15

174

4

320

Program
Changes

26

0

0

0

0

26

FY 2010
Budget

153

0

15

174

4

346

FY 2010 Budget

Operations and Training: The FY 2010 budget request includes $152.9 million, an increase of $29.5 million above the FY 2009 level, to support the U.S. Merchant Marine Academy (USMMA), State maritime academies, and MARAD operations. These programs support four DOT strategic goals: security, preparedness, and response; reduced congestion; global connectivity; and environmental stewardship. The budget request includes $74.5 million for the USMMA, $15.6 million for the State Maritime Academies, and $62.8 million for MARAD Operations.

The FY 2010 request includes a program increase of $15.0 million for a Presidential Initiative to support integrated planning with the Department of Homeland Security for development and modernization of inter-modal freight infrastructure linking coastal and inland ports to highway and rail networks, and $12.0 million for the USMMA for operational and capital improvements (including $7.2 million in capital improvement funds for deferred renovations of Mallory Pier, which is the Academy’s main ship mooring pier).

Ship Disposal: The maritime transportation industry is making important changes in its environmental stewardship, with increasing emphasis on sustainability. The FY 2010 budget request includes $15.0 million to remove obsolete ships from the National Defense Reserve Fleet for disposal, to support development and implementation of a risk mitigation plan for compliance with the National Invasive Species Act, and for testing and containment requirements related to the Clean Water Act. MARAD continues to pursue alternative disposal methods, such as artificial reefing initiatives, with other Federal agencies to promote transportation solutions that enhance communities and minimize any impact on the human and natural environment. The budget request also includes funding to continue nuclear license management for the inactive Nuclear Ship SAVANNAH. MARAD green programs will also work to advance compliance with new standards for air pollution control zones for ports and advance ballast water treatment technology.

Maritime Security Program: The FY 2010 budget request includes $174.0 million for the Maritime Security Program, which provides for payments of $2.9 million per ship, as authorized by the National Defense Authorization Act for Fiscal Year 2004, supporting the DOT strategic goal of security, preparedness, and response. MARAD will continue to enroll a fleet of 60 active, militarily useful, privately owned vessels to meet national defense and other security requirements, and to maintain a U.S. presence in international commercial shipping. The Maritime Security Program, together with the Voluntary Inter-modal Sea-lift Agreement Program, the Ready Reserve Force and the War Risk Insurance program, assures DOD access to U.S.-flag commercial ships and crews during DOD mobilizations, and helps ensure the efficient flow of military cargo through commercial ports.

Maritime Guaranteed Loan Program (Title XI): The FY 2010 budget request includes $3.6 million, an increase of $0.1 million above the FY 2009 level, to support the Title XI guaranteed loan program in providing affordable financing opportunities to ensure that small and medium shipbuilders can build ship in the United States. The program supports capacity and reduced congestion. The FY 2010 request funds administrative program support for new and existing loans in the Title XI portfolio.